Warren Buffett's Move Away from Muni Bonds - Is It a Red Flag for Muni Bonds?

Aug 22, 2012

Warren Buffett and Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) moved away from muni bonds by cancelling muni bond credit protection contracts worth $8 billion five months early. Is it a red flag for the muni bond market or an indicator that lot of municipalities and cities will default on their obligations? Meredith Whitney of Whitney Advisors have been predicting this for some time now and this may be the start of it.

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